Tiny AIM-listed serviced office provider Stonemartin is in talks over a corporate deal after losing most of its business contracts in April.

In its annual results published today chairman Richard Mead said the process was ‘well under way’. A deal would see Stonemartin either be sold, reversed into a third party or dispose of its corporate centres subsidiary.

The only building it now operates is New Broad Street House in the City of London, which is 89% occupied.

In April the company received £7m in cash for relinquishing the management of buildings in Birmingham, Manchester and Reading. Managing director Colin Peacock resigned a month earlier.

During the year it increased its turnover by 7% to £12.6m and reduced its pretax loss from £0.55m to £34,000.

‘The significant cash balances now held by the company and the success of New Broad Street House underpin our hopes of a satisfactory outturn for shareholders,’ said Mead.

Stonemartin shares fell 2% to 6.25p in early trading, valuing the company at £7.3m.